eBay mulls PayPal payment service spin off: report

PanARMENIAN.Net - eBay could spin off its payment service PayPal next year.

As Digital Spy reported citing The Information, the online retailer has been warning candidates for PayPal's CEO vacancy about the potential move.

Activist investor Carl Icahn has apparently been pushing for eBay and PayPal to split for sometime.

Conversely, eBay CEO John Donahoe believes the two businesses are integral to each other.

Icahn is said to have backed off the idea of late, claiming it's not the right time for the two to be divided.

However, other investors have reportedly warmed to a separate PayPal unit, hoping that it can attract online retailers who may be hesitant of its current closeness to eBay.

"The board will continue to assess all alternatives to create that long-term value and to enhance the growth and competitive positions of both eBay and PayPal. This position has not changed," eBay spokeswoman Amanda Miller said.

The previous CEO of PayPal David Marcus parted in June to join Facebook.